U.S. new home sales took a dive last month. The worse-than-expected 11.4% drop to 481,000 annualized units (lowest in four months) was the largest % decline since July 2013. The March drop follows three consecutive monthly gains, and is coming on the heels of Feb's upwardly revised level of 543,000 units, which was the highest in seven years.
There were upward revisions to the prior three months. The size of decline was a bit startling but it is not unheard of to have double-digit declines in this series. There were no special factors that come to mind; can't blame the weather (there was a winter storm early in the month, which battered the Northeast and parts of the South).
"Overall, the pace is sluggish but the trend in new home sales is still higher. Homebuilder confidence perked up for the first time in half a year, and they continue to report more orders. Don't be surprised to see a bounceback in April." said BMO Capital Markets in a report on Thursday
